The first book I want to share with you is the book that made me start the habit of reading self improvement books. This is not related with the book content itself, but after reading “Rich Dad Poor Dad” by Robert Kiyosaki, I started to feel intrigued about what skills I am missing in order to improve my life, I select one skill that I want to boost and I research books that help at achieving that. Remember that your life is based in the decisions you take, and that decisions are based on your mentality. Improving your mindset makes you take better decision, which ultimately leads to a better life.
In this book Robert transmits the mindset of the people who are clever financially, those who educates themselves about finance, marketing, economy, accounting, taxes and have an investing mindset. The main concept that Robert uses to evaluate the financial health is the cash-flow quadrant.
In the bottom table we list our relevant belongings, these that periodically either give or cost us money, and in the top table we list our money incomes and expenses. We have to include every cost of our life in this quadrant, such as our cost of living, a rented house for which we have a mortgage contributes to both, incomes and expenses, and so on. The assets and liabilities table is a bit more tricky since the house in which we are living has a value and my be considered by many as an asset, but in fact that house is costing us money every month and we are not getting anything back from it. Then our assets are those belongings that creates a periodically income venue while liabilities are those belongings that creates a periodically expense.
There are 5 main lections that we can extract from this book which I list below. Of course I don’t remembered all of them, I consulted this website to create this post.
- The rich don’t work for money, money works from them.
- Buy Assets Not Liabilities
- Reduce taxes through corporations
- Overcome your mental obstacles
- Keep learning all the time
It is important to read the book not just a summary or conform with the information in this post. This is because you will forget all this information in a few days. But if you read the book, he uses specific words, specific examples and repeats everything in such a way that programs your mind with the ideas he wants to transmit to you. You don’t need to remember literally all the lections from the book, you will have them embedded in your mindset.
If you want more learning contents from this author, you can follow Robert’s youtube channel. I agree with the mindset he want to transmit in his videos, he is trying to make people focus on investing, buy assets, build your own company, don’t work for money all your life, create financial freedom. However, I don’t like how he transmits this, you need to look at the global picture of what he is trying to say and mix that with your own thinking.
Nowadays he is pointing out that he uses debt to get rich, and that saving your money is something stupid because central banks are printing a lot of money and interest rates are near zero. He calls people that start life with a normal job as stupid (in my opinion is a great way to start learning), and he says that PhD stands for “Poor Helpless and Desperate” 🤣 (in my opinion you are contributing to society with your investigations). I think he is taking this to the extreme, and too much of anything is no good. He was not like that in the book Rich Dad Poor Dad which I consider to transmit a totally 100% healthy mindset.
You need to know that his videos are biased. Remember that the real estate is his main business, together with selling his books and other investments he may have. Then of course, he will try to make you get in massive debt to buy real estate and keep the market moving, is in his interest. Just don’t let yourself influenced by this attacks. Get the idea he want to transmit, analyze your possibilities, verify with your own research and think how could you implement that idea in your own life in order to improve.
Don’t forget to leave your opinion and share more books related with this one if you wish to.